Shrimp prices going through roof, Boeing pressuring suppliers and more nuggets from the Beige Book

There are two ways to read the Beige Book, which is the Federal Reserve’s collection of anecdotes about the economy. One is to look at the big picture, which is that “economic activity continued to expand” in most parts of the country from late November through the end of 2013.

But the other is to pick out fun or interesting nuggets. Here are a few:

• Demand for electronics was quite strong in the Cleveland and Minneapolis Districts, but San Francisco reported that electronics sales were weaker than in recent years.

• A medical equipment manufacturer in Boston says that growth was strong not just for its new products, which typically grow at double-digit rates, but also for legacy products where there was pent-up replacement demand.

Bloomberg

Workers assemble a Boeing Co. 787 Dreamliner airplane.

• A frozen fish producer [in the Boston district said] prices of shrimp and haddock were “through the roof.” Another exception is a producer of parts for the commercial aircraft industry who said that Boeing has been putting exceptional pressure on its suppliers to lower prices, something reported earlier by other firms in that industry.

• Auto dealers in upstate New York report that new vehicle sales were quite strong in November but there were preliminary signs of weakening in December.

• Manhattan hotels report that revenues per room fell more than 10% from a year earlier in November—the first 12-month decline since the fall of 2012.

• Manhattan’s co-op and condo market registered its strongest 4th quarter sales activity on record; one contact surmises that a spike in mortgage rates drove many fence-sitters to buy.

• A transportation services contact described “booming” growth for most modes and support facilities in the primary corridor through central and eastern Pennsylvania that serves the Northeast.

• One builder [in Philadelphia region] observed that he has now reached the limit of how much he can raise prices before impacting demand

Bloomberg

The Cosco Ashdod container ship at the Port of Virginia APM Terminal.

• On the import side, manufacturing supplies such as pipe and wire have risen significantly and port administrators expect that re-shoring of manufacturing will continue to build demand for such imports [in Richmond].

• A retail representative in central Virginia remarked that the pace of sales at small merchants in that area was “pretty depressing.

• A dealer [in the Richmond district] commented that people have more confidence in the economy and are now willing to get that new car “they’ve been hankering for.”

• One manager [in Richmond district] suggested that qualified candidates seemed to be basing employment decisions on more than just salary, and were also considering factors such as the work environment.

• Banking contacts [in Chicago] reported increased competition from local and regional banks was leading to downward pressure on pricing and looser and fewer covenants in deal structures for both small and middle market firms. Aggressive lending in the institutional leveraged loan market was also cited, increasing debt-to-equity multiples.

• Snowmobiling and cross country skiing have benefited from early snow in northwestern Wisconsin, according to a representative of a chamber of commerce.

• A new wool mill in Minnesota will be the second-largest such operation in the nation.

• There was a pickup in reports of pay increases and wage pressures [in Dallas].